The Airline also has 15,000 of preferred stock outstanding at a market price of 30...
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The Airline also has 15,000 of preferred stock outstanding at a market price of 30 per share and a bond issue with a total face value of 300.000 is selling for 95 percent of the face value. Cost of equity is 10% while the cost of debt is to be 5%. The coast of preferred stock is also found to be 7%. The going tax rate for delta is 35%, what is Delta's weighted average cost of capital ?
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